MultiSig MicroTrust Escrow (Why Trust A Stranger)Why trust me? Don't!!! This is about reducing risk maybe you should ask your regular escrow provider to offer multisig escrow it's safer...MultiSig MicroTrust Escrow/ArbitrationEDIT: I wish I could take credit for this but all I did was host it. OutCast3k wrote the source. I have reached out to him to let him know what I did but have heard nothing. Full Credit goes to him.
When the transaction ends well and the buyer is satisfied, the buyer and the seller can sign a transaction together that releases the payment from the multisig address to the seller.
In case of a dispute, both parties can contact the 3rd party, explain their side of the story and ask him to approve a transaction that releases the payment in the manner they find fair.
The 3rd party can only approve a transaction that is signed by either the buyer or the seller, and cannot control the funds otherwise.
This is all done with the bitcoin-QT client as well.